Service scope

The main characteristics of LuxCSD's service scope can be summarised as follows:

Service Scope

Securities settlement DVP and FOP

LuxCSD offers settlement services for DVP in EUR central bank money and commercial bank money for other currencies with both LuxCSD and Clearstream Banking S.A. counterparties. In addition DVP settlement with counterparties in more than 50 domestic markets is possible.

Issuance services

LuxCSD supports the issuance, settlement, asset servicing, and safekeeping of a wide range of securities.

LuxCSD will act as a centralised facility for the issuance and settlement of investment funds domiciled in Luxembourg or in other countries.

Funds order routing services

LuxCSD offers order routing services for investment fund shares through Vestima, an automated order routing service for the investment funds industry. Vestima provides a single entry and reception point for domestic, international and offshore funds, allowing orders and order confirmations to be submitted, validated and routed to the relevant recipient.

Asset servicing

Standard custody services include the handling of:

Exchanges;

Income and redemptions;

Corporate action events.

Comprehensive custody services are available to customers for securities accepted and held by LuxCSD. They include collection of coupon and dividend payments, collection of principal, exercise of rights and warrants as instructed by the customer, tax and proxy voting services.

Reporting and connectivity

Reporting and online connectivity in ISO 15022 will be available via the CreationConnect suite of products.

LEI issuance and maintenance

National access point to Target 2 Securities (T2S)

LuxCSD is playing a central role in preparing the local financial institutions to benefit from the opportunities provided by T2S and, simultaneously, in allowing Luxembourg's marketplace to remain competitive as a financial centre once the new European settlement infrastructure is implemented.

As part of its key strategy and initiatives, LuxCSD will provide the Luxembourg financial market infrastructure with a national access point to T2S for Euro issuance and settlement in central bank money. This will provide a strong foundation for offering customers a wide range of cross border services for securities and investment funds. LuxCSD is to join T2S with the fourth wave, in February 2017. LuxCSD will ensure a smooth transition to T2S for its customers based on a phased approach.